Voluntary Transfer of Farmland

Farm or Land Disposal

The transfer of a family farm to a child is a big decision and the farmer should speak with their solicitor in advance of any proposed transfer to see what options are available and to find the best solutions for you. Of particular importance for the farmer when considering a transfer of the farm is at all times to ensure that they have sufficient income for the future for themselves and their family.
Other issues to consider would be the transfer of farm entitlements such as single farm payment, reps, milk quota, etc., and of course any taxes that may fall due.

We do not provide Tax advice.

Young Trained Farmer Relief

The purpose of this exemption is to encourage the transfer of agricultural land from one generation to the next.
Agricultural land includes the land, farmhouses, and farm buildings.

A zero rate of Stamp Duty applies to farmers who qualify.

There are a number of conditions that must be complied with by the young farmer at the date of the execution of the deed of transfer:

  1.  The “young trained farmer” must be under 35 years of age;
  2. He/she must have attained one of the necessary qualifications as listed in the Revenue leaflet (e.g. at the date of transfer, must be under 35 years of age and be the holder of a letter confirming satisfactory completion of a course of training approved by Teagasc for persons who, in the opinion of Teagasc, are restricted in their learning capacity due to physical, sensory, intellectual disability or to mental health. Where Teagasc certifies that any other qualification corresponds to a qualification as set down and that other qualification is deemed by the National Qualifications Authority of Ireland to be at a level on the National Framework of Qualifications, equivalent to that of the listed qualifications, then that other qualification will be treated as a qualifying one by the Revenue Commissioners for the purposes of the relief.
  3. The farmer must undertake to spend not less than 50% of his/her working time farming the land after the transfer; and
  4. The land cannot be sold for five years unless such lands are replaced within one year of disposal - https://www.revenue.ie/en/property/stamp-duty/exemptions-and-reliefs/reliefs-for-farmers.aspx

Favorite Nephew/Niece Relief

In order to claim this relief, the niece or nephew must have worked substantially on a full-time basis on the farm for their aunt/uncle for a period of at least 5 years prior to the date of the gift/inheritance.
“Substantially on a full time basis” generally means at least 24 hours a week, but if all the farm work was carried out just by the farmer, his spouse and the nephew/niece, then 15 hours a week would be sufficient to meet the criteria.